Factoring is a banking instrument enabling a company to assign its receivables for delivered goods or services to the bank (for a certain fee).
By using Ameriabank’s factoring services you will have the following benefits:
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Collateral-free financing of deliveries under the condition of deferred payments
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Assurance of risks associated with buyers’ late payments or non-payments
Guide to factoring
Stages of factoring transaction
Domestic classic factoring
Ameriabank offers a pack of factoring services, including non-recourse factoring on condition of assigning to the Bank the receivables of companies included in the list approved by the Bank. The financing is secured by the agreement executed with the partner-company. This type of financing implies the following:
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Collateral-free financing of deliveries under the condition of deferred payments
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Assurance of risks associated with buyers’ late payments or non-payments
Terms
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Terms of factoring per currencies are specified below:
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1
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Annual interest accrued on the amount of finance (to be charged upon expiry of the agreement)
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AMD
12 %: up to 60 days
12.5 %: up to 90 days
13.5 %: up to180 days
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USD
7 %: up to 60 days
8 %: up to 90 days
9 %: up to180 days
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EUR
5,5 %: up to 60 days
6,5 %: up to 90 days
7,5%: up to 180 days
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RUB
12 %: up to 60 days
13 %: up to 90 days
14 %: up to180 days
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2
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Factoring service fee (lump sum fee charged out of the invoice amount at the time of disbursement of the finance)
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For all currencies:
0.6%-3%
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3
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Maximum time span between provision of finance and fulfillment of liabilities under the assigned claim
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Up to 180 days
(calculated starting from the date of invoice provision)
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4
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Maximum amount of finance
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Up to 90% of the assigned invoice
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5
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Type of factoring
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Recourse/Non-recourse factoring
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Making a Decision on Factoring Application
The bank makes a final decision on factoring application maximum within 10 (ten) business days upon receipt of the complete set of documents.
In case of pledge of property, finance is disbursed to the client upon execution of the respective pledge agreements. Furthermore, in case of pledge of property, the factoring is issued to the client within 1 business day upon proper fulfillment of the following conditions precedent: (i) execution of pledge agreements in accordance with the legislation of the RA, such agreements prepared in form and substance satisfactory to the Bank, (ii) insurance of the collateral (upon the Bank’s request) by an insurance company cooperating with the Bank, (iii) fulfillment of other terms of factoring by the client.
What may help you to get your factoring application approved
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Sound financial position
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Banking/credit history
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Security
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Management quality
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Business environment
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Business activities and credit history of the affiliated parties
Why your application might be rejected
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The information (documents and other data) is not trustworthy or is incomplete.
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The client’s declared financial flows/income are not sufficient to cover the liabilities.
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The client has bad credit history, delinquent and/or classified liabilities (including to third parties).
ATTENTION! IF YOU FAIL TO REPAY THE ASSIGNED AMOUNT WHEN DUE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE REPORTED TO THE CREDIT REGISTER MAXIMUM IN 3 BUSINESS DAYS.
ATTENTION! IF YOU FAIL TO MEET YOUR COMMITMENTS UNDER THE AGREEMENT AND THE BANK ENFORCES THE PLEDGE TO SETTLE THEM, BUT THE VALUE OF PLEDGE APPEARS TO BE INSUFFICIENT TO COVER ALL THE COMMITMENTS ENTERED INTO BY YOU, ANY OTHER PROPERTY YOU OWN MAY BE ENFORCED TO SETTLE THE CLAIM.
ATTENTION! YOUR PROPERTY CAN BE FORECLOSED PURSUANT TO LAW, IF YOU FAIL TO REPAY THE CREDIT OBLIGATIONS AND INTEREST WHEN DUE.
Secured Factoring
Whenever required, the Creditor and the Debtor may be required to provide collateral or other means of security to mitigate the risks.
The value of the loan security is included in the estimation of the LTV ratio in an amount not more than:
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Real estate: up to 100%
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Vehicles: 50%
While calculating the LTV ratio, the value of the finance is considered to be equal to the sum of (i) that portion of the requested finance that is above AMD 10 million, and (ii) outstanding unsecured credit obligations of the client. Furthermore, if the client’s outstanding unsecured credit obligations are above AMD 10 million, the LTV ratio is calculated only in relation to the requested amount, in full.